Pioneer has agreed to sell the majority of its home/AV business, to both a Hong Kong private equity firm and to Onkyo.

According to the Wall Street Journal, the complicated transaction will have Pioneer selling a 51 percent stake to Baring Private Equity Asia. The remaining interest will be split between Pioneer itself and Onkyo. Pioneer and Onkyo will remain separate brands.

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Pioneer Corporation, Onkyo Corporation and Baring Private Equity Asia have reached a basic agreement to commence discussions with an eye to integrating a part of Home AV business operations between Pioneer and Onkyo. Also, a portion of shares in Pioneer Home Electronics Corporation, a wholly-owned subsidiary of Pioneer, will be transferred to Baring and Onkyo. After the transfer, Baring will have 51% stake in PHE. The remaining 49% will be determined in consultation between the related parties.